Acron properties with slight value corrections
Acron Group has presented the half-year results of its Bern-listed real estate investment vehicles Acron Helvetia I and Acron Helvetia III. Thereby, there are value corrections for the properties - both upwards and downwards.
Acron Helvetia I Immobilien AG, which holds the Waser office and logistics property in Buchs/ZH (Furtbachstrasse 16-18; sole tenant: Lyreco Switzerland AG) and the Südpark Solothurn office property (Zuchwilerstrasse; main tenant: AZ Medien AG), posted a Swiss GAAP FER loss of CHF 333,728 in the first half of 2017 (first half of previous year: CHF 471,716). This result was due to a combination of valuation adjustments at the two properties and increased real estate expenses, Acron reports. Compared to the same period last year, rental income is unchanged and totaled CHF 978,118 for the first half of 2017.
Acron Helvetia I depreciates slightly
Based on the appraisals as of June 30, 2017, the value of the property in Solothurn was adjusted in the first half of the year from 12.98 million (as of December 31, 2016) to a new 12.76 million. According to the company, the decrease in valuation is due to an adjustment of the plinth reserves. The value of the property in Buchs was corrected from 15.99 million to a new 15.51 million as of June 30, 2017. This devaluation is composed of the correction of 15.65 million as of Dec. 31, 2016, as well as the land acquisition worth CHF 341,500.
The net asset value (NAV) of the Company was CHF 7.90 per share as of June 30, 2017 (NAV as of December 31, 2016: 8.33 per share). As of the end of August 2017, the Company made a par value repayment of CHF 0.60 per share as resolved by the Annual General Meeting. Based on the bid price of the shares as of June 30, 2017 (CHF 6.41), this corresponds to a payout of 9.36 percent.
Acron Helvetia III with higher property value
Acron Helvetia III Immobilien AG, which holds an office property in Münchenbuchsee/Bern-Zollikofen, generated a Swiss GAAP FER profit of approximately 1.1 million in the first half of 2017, CHF 870,985 higher than the half-year result as of June 30, 2016. The main reason for the improvement in the result is the increased property value, which has risen from 30.35 to 31.25 million as of June 30, 2017 since year-end 2016.
The investment property is a six-story office building at Industriestrasse 21 in Zollikofen, which is fully leased to T-Systems Schweiz AG. Last year, Acron was able to extend the lease agreement, which expires in 2018, ahead of schedule. T-Systems concluded the new contract with Acron Helvetia III Immobilien AG for a further ten years (until 2028).
Rental income as at June 30, 2017 was slightly lower than the same half of the previous year and amounted to CHF 776,439 (796,424). According to Acron, this decrease is due to a rent-free period under the lease extension, which is presented on the balance sheet spread over the next ten years of the lease. Debt financing was further reduced in the first half of 2017. The Company's debt financing ratio according to Swiss GAAP FER excluding deferred taxes is approximately 58.91 percent.
As of the end of September 2017, the Company made a par value repayment of CHF 5.25 per share as resolved by the Annual General Meeting. Based on the bid price of the share as of June 30, 2017 (CHF 116.00), this corresponds to a payout of 4.60 percent.
